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Air cargo output drop worst since dotcom bubble burst - 27/Oct/2008
Source: Aeroports de Paris
The International Air Transport Association (IATA) has announced
global international air transport figures for September which show
that cargo traffic dropped by 7.7% compared to the same month in 2007.
It described that decline as the worst since the 'dotcom' technology
bubble burst in 2001.
According to IATA, recent declines in air freight have slowed 2008
year-to-date growth to 0.1%, with all regions except the Middle East
and Africa reporting negative results. The most alarming drop was with
Asia Pacific carriers - the largest players in the market. That
region's carriers reported a 10.6% decline in September. Europe and
North America carriers, which had seen flat growth through August, saw
their cargo traffic fall 6.8% and 6%, respectively.
Giovanni Bisignani, IATA's Director General and CEO, commented: "Even
the good news that the oil price has fallen to half its July peak is
not enough to offset the impact of the drop in demand. At this rate,
losses may be even deeper than our forecast $5.2bn for this year."
The problems which the airline industry as a whole periodically faces
have been exacerbated by high levels of regulation which prevent
consolidation and innovation in the sector. The web of 3,500 bilateral
air service agreements that govern international air transport denies
market access until specifically agreed. The ownership clauses that
are contained in those agreements preclude mergers across borders.
"Look at what the banking industry is doing...We have seen mergers
without anybody asking to see the investors' passports. Airlines are
not asking for handouts. But today's crisis highlights the need for
airlines to be able to run their businesses like normal global
businesses," said Bisignani. |